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Hong Kong’s central bank said the city may face “quick corrections” in asset prices should fund flows reverse, adding to concerns voiced by Japan, China and South Korea on the danger of speculative capital. A rally in the stock market was fueled by an influx of capital as investors’ risk desire gained and they bet on an improving outlook for China’s financial system, the Hong Kong Monetary Authority said in a quarterly report yesterday. Outflows may bring “volatilities in the real economy,” the HKMA said. Housing prices in Hong Kong have gained in the last 10 months, while the benchmark Hang Seng Index has increased 50% this year. Financial officials in Japan and China, Asia’s two largest economies, warned last month that the Federal Reserve’s interest rate policy risks spurring speculative capital that may blow up asset prices and derail an economic recovery.